As a landlord, you count on lease agreements to give you long-term stability and financial security. But what happens when a tenant wants to break the lease early? Whether it’s due to a job relocation, financial hardship, or personal reasons, early lease terminations can be frustrating. Understanding your rights and responsibilities according to Alberta regulations—as well as those of your tenant—can help you navigate the situation smoothly while minimizing financial loss. We’ll walk you through the steps you have to take when a tenant wants to leave early and end the lease on a good note.
Alberta Laws and Regulations on Early Lease Termination
In Alberta, tenants must send the notice delivered in person or via registered mail. The procedure to end a tenancy depends on the type of agreement, fixed term or periodic, and the specific circumstances involved:
- Fixed Term Tenancy: A fixed-term lease has a specific end date. If a tenant wants to end it early due to personal reasons, such as relocation or financial hardship, we recommend discussing the situation with the landlord. While you, as a landlord, aren’t obligated to agree, if your tenant shows you responsibility and goodwill by explaining their situation or offering assistance in finding a suitable new tenant, you can reach an agreement with them.
- Periodic Tenancy: This type of lease goes on a recurring basis (monthly, weekly, yearly) without a fixed end date. To end a periodic tenancy, your tenants must provide written notice aligned with the required notice periods stated in the Residential Tenancies Act:
- Weekly Tenancy: One week of notice. In case of late notice, the lease will end on the last day of the following full tenancy week.
- Monthly Tenancy: One month of notice. If the notice is served late, the tenancy will end on the last day of the next full tenancy month.
- Yearly Tenancy: 60-day notice before the last day of the tenancy year. A late notice means the tenancy will end 90 days after the date on which the notice is served.
In either case, any agreement reached to terminate the lease early should be documented in writing, and it must include the following information:
- The address of the rental property;
- The date the lease will end;
- Both parties’ signatures.
Exceptional Situations to End a Tenancy in Alberta
There are some extreme cases in which ending a tenancy early may be justified, such as:
1 – Substantial Breach
In case either party commits a substantial breach of the lease, such as damage to the property or a violation of privacy, the other party can send a 14-notice to end the lease early. If your tenant wants to end the tenancy and they allege a substantial breach and you disagree, you can apply to the Residential Tenancy Dispute Resolution Service (RTDS) for mediation assistance.
2 – Special Circumstances
If your tenant, their children or a protected adult are experiencing domestic violence, they have the right to end the tenancy early to protect their safety. In this case, they have to give you a Certificate Confirming Grounds to Terminate tenancy to end the tenancy without penalty.
My Tenant Ended the Tenancy Without a Proper Notice, Now What?
If your tenant leaves the property early without your agreement, a valid justification, or without giving notice according to the type of lease, they may be responsible for rent until the end of the lease term or until you find a new tenant. If you’re dealing with this type of situation we recommend you contact the RTDS or seek legal advice to help you resolve the dispute.
Navigating an Early Lease Termination
Even though landlords expect their tenants to stay at the property during the duration of the lease, they can have unexpected and significant changes in their lives, prompting them to seek early termination. Dealing with a tenant’s request to end the lease early without conflict requires an approach that balances legal considerations and open communication to reach an agreement that benefits both parties and is crucial to minimize potential financial and legal repercussions. By staying informed about your rights and responsibilities and dealing with the situation with flexibility and understanding, you can effectively manage early lease termination to move on to your next tenant without mishaps.
